1. (a) Purpose. The rehabilitation to the point of employability status serves to:

   1. (1) Identify veterans who receive training and rehabilitation services to enable them to attain a vocational goal; and

   2. (2) Assure that services specified in the veteran's IWRP are provided in a timely manner by VA.

      (Authority: 38 U.S.C. 3101)

2. (b) Assignment. A veteran's case may be assigned or reassigned to rehabilitation to the point of employability status under the provisions of § 21.84, § 21.94, or § 21.96.

   (Authority: 38 U.S.C. 3107)

3. (c) Continuation in rehabilitation to the point of employability status. A veteran will be assigned to rehabilitation to the point of employability status during periods in which:

   1. (1) The veteran has progressed through applicant status and evaluation and planning status (including extended evaluation status when appropriate), and is pending induction into the facility at which training and rehabilitation services will be provided;
   2. (2) The veteran is receiving training and rehabilitation services prescribed in the IWRP; or

   3. (3) The veteran is on authorized leave of absence.

      (Authority: 38 U.S.C. 3104, 3108)

4. (d) Termination of rehabilitation to the point of employability status when goals of the IWRP for this period are achieved. VA will consider a veteran to have completed the period of rehabilitation to the point of employability, and will terminate this status under the following conditions:

   1. (1) The veteran achieves the goals of, and has been provided services specified in, the IWRP;
   2. (2) The veteran who leaves the program has completed a sufficient portion of the services prescribed in the IWRP to establish clearly that he or she is generally employable as a trained worker in the occupational objective established in the IWRP;
   3. (3) The veteran, who has not completed all prescribed services in the IWRP, accepts employment in the occupational objective established in the IWRP with wages and other benefits commensurate with wages and benefits received by trained workers; or

   4. (4) The veteran:

      1. (i) Satisfactorily completes a prescribed program, the practice of which requires pursuing an examination for licensure, but

      2. (ii) Is unable to take the licensure examination prior to the basic twelve-year termination date and there is no basis for extension of that date.

         (Authority: 38 U.S.C. 3107)

5. (e) Other conditions for termination of rehabilitation to the point of employability status. In addition to termination under conditions described in paragraph (d) of this section, the classification of the veteran's records in this status may be terminated under any of the following conditions:

   1. (1) A veteran who has been notified of necessary arrangements to begin the program, the date the program begins and instructions as to the next steps to be taken:

      1. (i) Fails to report and does not respond to initial or subsequent followup by the case manager;
      2. (ii) Declines or refuses to enter the program; or
      3. (iii) Defers induction for a period exceeding 30 days beyond the scheduled beginning date of the program, except where the deferment is due to illness or other sufficient reason.
   2. (2) Either the veteran or VA interrupts the period of rehabilitation to the point of employability;
   3. (3) Either VA or the veteran discontinues the period of rehabilitation to the point of employability;
   4. (4) The veteran reaches his or her termination date, and there is no basis for extension under § 21.44;
   5. (5) The veteran's entitlement to training and rehabilitation services under Chapter 31 is exhausted, and there is no basis for extension under § 21.78; or

   6. (6) Service-connection for the veteran's service-connected disability is served by VA or he or she otherwise ceases to be eligible.

      (Authority: 38 U.S.C. 3107)

6. (f) Payment of employment adjustment allowance. An employment adjustment allowance will be paid when the veteran's classification in rehabilitation to the point of employability status is terminated under provisions of paragraph (d) of this section. An employment adjustment allowance will not be paid if termination is for one of the reasons specified in paragraph (e) of this section.

   (Authority: 38 U.S.C. 3108(a))

   Cross References: See §§ 21.120 Educational and vocational trainings services, 21.282 Effective date of induction into a rehabilitation program, and 21.284 Reentering into a rehabilitation program.

[49 FR 40814, Oct. 18, 1984, as amended at 84 FR 193, Jan. 18, 2019]